Tata Electronics has reached an agreement to acquire a 60% stake in Pegatron’s iPhone manufacturing facility in Chennai, India, according to sources familiar with the matter. The Taiwanese company will retain a 40% share and provide technical support under the new joint venture, with Tata assuming operational control.
The Chennai facility, which employs approximately 10,000 people and produces around 5 million iPhones annually, will become Tata’s third iPhone manufacturing plant in India. The move follows Tata’s earlier acquisition of an iPhone assembly plant in Karnataka from Taiwan’s Wistron and its ongoing construction of another facility in Hosur, Tamil Nadu.
The companies plan to seek approval for the transaction from the Competition Commission of India in the coming days. Financial details of the deal have not been disclosed.
This acquisition is seen as part of Apple’s broader strategy to diversify its supply chain amid geopolitical tensions and reduce dependence on manufacturing in China. Analysts estimate that India could account for 20-25% of total iPhone shipments in 2024, a significant increase from 12-14% in the previous year.